The penalty was imposed through an order dated September 8, 2026, following the central bank’s statutory inspection of the asset reconstruction company (ARC) with reference to its financial position as of March 31, 2025.
RBI said its supervisory review found non-compliance with directions on income recognition. After examining ACRE’s response to the show-cause notice, further submissions and representations made during a personal hearing, the regulator concluded that the charge relating to management fees was established.
The penalty has been imposed under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
RBI clarified that the action relates to regulatory compliance deficiencies and should not be construed as a finding on the validity of any transaction or agreement entered into by ACRE with its customers.
The central bank also said the penalty does not preclude it from taking any other action against the company in the future.
